- Latest available (Revised)
- Original (As enacted)
Corporation Tax Act 2009
You are here:
- UK Public General Acts
- 2009 c. 4
- Part 13
- Chapter 2
- Qualifying expenditure
What Version
Advanced Features
- Show Geographical Extent(e.g. England, Wales, Scotland and Northern Ireland)
- Show Timeline of Changes
Opening Options
Changes over time for: Cross Heading: Qualifying expenditure
Changes to legislation:
Corporation Tax Act 2009, Cross Heading: Qualifying expenditure is up to date with all changes known to be in force on or before 16 November 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
Changes to Legislation
Revised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the legislation in the affected provisions. Use the ‘more’ link to open the changes and effects relevant to the provision you are viewing.
Changes and effects yet to be applied to the whole Act associated Parts and Chapters:
- Blanket amendment words substituted by S.I. 2011/1043 art. 3 4
Whole provisions yet to be inserted into this Act (including any effects on those provisions):
- s. 322(2A)(zb) inserted by 2016 c. 24 s. 73(5)
- s. 1058B(5)(ea) inserted by 2023 c. 20 Sch. para. 57
- s. 1094(2A)-(2C) inserted by 2012 c. 14 Sch. 3 para. 13(3)
- s. 1106(4A)-(4C) inserted by 2012 c. 14 Sch. 3 para. 14(3)
Qualifying expenditureU.K.
1051Qualifying Chapter 2 expenditureU.K.
For the purposes of this Part a company's “qualifying Chapter 2 expenditure” [F1is such of its expenditure as is qualifying Chapter 2 expenditure by virtue of section 1052, 1053 or 1053A.]
Textual Amendments
F1Words in s. 1051 substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 6(8), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
[F21052Qualifying expenditure: in-house R&DU.K.
(1)Expenditure of a company is qualifying Chapter 2 expenditure if it meets each of conditions A to D in this section.
(2)Condition A is that the expenditure is attributable to relevant research and development undertaken by the company itself.
(3)Condition B is that the expenditure is—
(a)incurred on staffing costs (see section 1123),
(b)incurred on software, data licences, cloud computing services or consumable items (see section 1125),
(c)qualifying expenditure on externally provided workers (see section 1127), or
(d)incurred on relevant payments to the subjects of a clinical trial (see section 1140).
(4)Condition C is that the research and development is not contracted out to the company (see section 1133).
(5)Condition D is that the expenditure is not attributable to an exempt foreign permanent establishment (see section 1138B).
(6)See sections 1124, 1126 to 1126B and 1132 for provision about when expenditure within subsection (3)(a), (b) or (c) is attributable to relevant research and development.
Textual Amendments
F2Ss. 1052-1053A substituted for ss. 1052-1053 (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 6(9), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
1053Qualifying expenditure: payments for contracted out R&DU.K.
(1)Expenditure of a company is qualifying Chapter 2 expenditure if it meets each of conditions A to D in this section.
(2)Condition A is that the expenditure is attributable to relevant research and development contracted out by the company (see section 1133).
(3)Condition B is that the research and development is not also contracted out to the company (see section 1133).
(4)Condition C is that the expenditure is incurred in making the qualifying element of a contractor payment (see sections 1133 to 1136).
(5)Condition D is that the expenditure is not attributable to an exempt foreign permanent establishment (see section 1138B).
(6)See sections 1124, 1126 to 1126B and 1132 for provision about when particular kinds of expenditure are attributable to relevant research and development.
Textual Amendments
F2Ss. 1052-1053A substituted for ss. 1052-1053 (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 6(9), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
1053AQualifying expenditure: activity as contractor for irrelievable clientU.K.
(1)Expenditure of a company is qualifying Chapter 2 expenditure if it meets conditions A, B and C in this section.
(2)Condition A is that the expenditure is attributable to relevant research and development contracted out to the company (see section 1133).
(3)Condition B is that subsection (4) is satisfied by each person by whom the research and development is contracted out to the company.
(4)A person satisfies this subsection if—
(a)the person is an ineligible company (see section 1142), or
(b)the person is not, in relation to the contracting out of the research and development by that person, acting in the course of a trade, profession or vocation within the charge to tax.
(5)Condition C is that the expenditure would, but for the fact that the research and development is contracted out to the company, be qualifying Chapter 2 expenditure by virtue of section 1052 or 1053.]
Textual Amendments
F2Ss. 1052-1053A substituted for ss. 1052-1053 (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 6(9), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Options/Help
Print Options
PrintThe Whole Act
PrintThe Whole Part
PrintThe Whole Chapter
PrintThis Cross Heading only
You have chosen to open The Whole Act
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
You have chosen to open The Whole Act as a PDF
The Whole Act you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
You have chosen to open The Whole Act without Schedules
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
You have chosen to open The Whole Act without Schedules as a PDF
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
You have chosen to open the Whole Act
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
You have chosen to open the Whole Act without Schedules
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
You have chosen to open Schedules only
The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Legislation is available in different versions:
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
See additional information alongside the content
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Opening Options
Different options to open legislation in order to view more content on screen at once
Explanatory Notes
Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.
More Resources
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
- the original print PDF of the as enacted version that was used for the print copy
- lists of changes made by and/or affecting this legislation item
- confers power and blanket amendment details
- all formats of all associated documents
- correction slips
- links to related legislation and further information resources
Timeline of Changes
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
More Resources
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
- the original print PDF of the as enacted version that was used for the print copy
- correction slips
Click 'View More' or select 'More Resources' tab for additional information including:
- lists of changes made by and/or affecting this legislation item
- confers power and blanket amendment details
- all formats of all associated documents
- links to related legislation and further information resources
All content is available under the Open Government Licence v3.0 except where otherwise stated. This site additionally contains content derived from EUR-Lex, reused under the terms of the Commission Decision 2011/833/EU on the reuse of documents from the EU institutions. For more information see the EUR-Lex public statement on re-use.